Can they do that?????

Alex_LS

There's a lot of misreading going on here. The OP states that the balance was £4000, on a limit of £4400. Paying £3000 takes his balance to £1000, which is £300 under his new limit. No naughtiness at all by the bank based on that. What's not stated is whether that £60 was one of a number of transactions, or whether that '£4000' was actually, say, £4250.

chris-j

At end of day you should challenge penalty for overlimit under circumstances but in big scheme of things you are £3000 less in debt, you are paying less interest on this card and they have reduced temptation to spend.
This could be turning point for you becoming debt free so look at this as a positive thing but don't let them charge you more money than they should.

Fed_up_bloke

Why was the purchase of £60 processed by the system if it took the account over it's limit.

The PDQ should of declined the sale?

Dunree

Fed_up_bloke wrote: »

Why was the purchase of £60 processed by the system if it took the account over it's limit.

The PDQ should of declined the sale?

Was thinking that myself. If there wasn't enough on the card, the transaction shouldn't have gone through...

pqrdef

The usable limit is less than the stated limit, because of interest.

From a cardholder's point of view, a payment that takes you over the limit is one that fails to leave enough headroom for the interest to be added when the next statement is issued.

pqrdef

Celso wrote: »

I have my name on a mortgage that is on arrears through Lloyds. the mortgage is on a house that my ex is leaving and paying for it now. Is that why they reduced my limit?

Their processes may or may not be that effective, but this can't do you any good. If you have a joint mortgage, you can't make a private arrangement with your partner to the detriment of your creditor. You're responsible to the bank for paying off the arrears you mention. Maybe you should have put the PPI money towards that.

Hopefully your current account isn't with the same bank, or they might dip in.

opinions4u

Fed_up_bloke wrote: »

Why was the purchase of £60 processed by the system if it took the account over it's limit.

The PDQ should of declined the sale?

Not all transactsions are checked in real time.

maninthestreet

£4000 - £3000 = £1000 -this does not exceed the new CC limit of £1300.
£1000 + £60 = £1060 -this still does not exceed the the new CC limit of £1300. Or have I missed something??

tomsco

opinions4u wrote: »

Not all transactsions are checked in real time.

That's what I though. That some merchant's have a certain limit that if the purchase is below they don't check immediately as it speeds up the process.

oscar52

Fed_up_bloke wrote: »

Why was the purchase of £60 processed by the system if it took the account over it's limit.

The PDQ should of declined the sale?

Dunree wrote: »

Was thinking that myself. If there wasn't enough on the card, the transaction shouldn't have gone through...

Many providers have a "shadow limit" so although your limit will be say £4000, the system will allow you to go to £4250.

Completely wrong in my opinion, but that is why it happens sometimes.